Tax credit

Name of the instrument - Local language: Bildungsprämie
Name of the instrument - English translation: Tax credit
Scheme ID: 3
Country: Austria
Reporting year: 2015
Type of instrument: Tax incentive for companies
Type of entry: Single instrument

Short description: A tax credit equal to 6% of the eligible training costs was offered to companies without profits or to companies for which this tax credit scheme was more favourable compared to the alternatively available tax allowance scheme. Only costs for external training were eligible. The scheme was terminated in the end of 2015 for a perceived lack of effectiveness in increasing companies' training activities, as part of a tax reform package.
Short description of the related instruments: nap

Level of operation: National
Name of a part of the country: nap
Name of the region (for regional instruments): nap
Name of the sector (for sectoral instruments): nap
Relevance: Key scheme
Legal basis: § 108c EStG (Income Tax Act)
Objective(s) and target(s): Companies which do not make a profit (i.e. do not pay corporate income tax and therefore cannot benefit from 120% tax allowance) may choose only Bildungsprämie which is credited to their tax account.
Year of implementation: 2002
Year of termination: 2015
Operation/management: Locally responsible tax collection office (under the authority of the Federal Ministry of Finance).
Eligible group(s): Companies
Group(s) with preferential treatment: None
Education and training eligible: External and internal training of employees in the company´s interest.
Source of financing and collection mechanism: State (loss of tax revenue)
company
Financing formula and allocation mechanisms: 6% of verifiable training expenses reduction of future tax; no limits in absolute amounts.
Eligible costs: Fees and other costs related to education and training (materials, meals)
Frequency of the use: Each year
Volumes of funding: According to the latest published estimates, public investment (foregone tax revenues) resulting from tax credit added up to EUR 22 000 000.
Beneficiaries/take up: In 2009, some 24 600 companies used the scheme.
Organisation responsible for monitoring/evaluation: Locally responsible tax collection office (under the authority of the Federal Ministry of Finance).
Monitoring/evaluation reports available: na
Most relevant webpage - in English: http://www.advantageaustria.org/international/zentral/business-guide-oe…
Most relevant webpage - local language: https://www.wko.at/Content.Node/Service/Steuern/Einkommensteuer-und-Koe…
Recent changes: Discontinued from the end of 2015. The scheme was abolished (as a part of a tax reform package) for a perceived lack of effectiveness in increasing companies's training activities.
Sources: https://www.usp.gv.at/Portal.Node/usp/public/content/steuern_und_finanz…; Bundesrepublik Österreich (2015) Gesamte Rechtsvorschrift für Einkommensteuergesetz 1988, Fassung vom 16.04.2015. Wien. Online: https://www.ris.bka.gv.at/GeltendeFassung.wxe?Abfrage=Bundesnormen&Gese…; Bundesministerium für Finanzen (2006) 1. Wartungserlass 2006 betreffend EStR 2000. Wien. Online: https://findok.bmf.gv.at/findok?execution=e1s1&dokumentId=5eef3e5b-bfba…; Bundesministerium für Finanzen (2007) EStR 2000 - Wartungserlass 2007. Wien. Online: https://findok.bmf.gv.at/findok?execution=e2s1&dokumentId=30615e35-cc21…